Yahoo Finance The One Bill That Will Get More Expensive if Biden Is Re-Elected
The two major candidates running in the November election couldn’t be more different on many issues. But the issue that most Americans have on their minds is the economy — more specifically, their personal financial situation.
With inflation being the big news of the last year or so, many voters are concerned that prices will continue to rise under a second Biden administration. Here’s why that’s unlikely and the one bill that will likely rise if Biden wins in November.
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Will Inflation Continue?
It’s no secret to anyone who buys groceries, goes out to eat, goes on vacation, or spends money on just about anything else — prices have gone up. While it’s difficult to feel that pinch in your pocketbook, it’s important to look at this logically.
As COVID-19 began to wane, many economists predicted a recession or at least a ‘hard landing.’ After all, many people couldn’t work during the pandemic, and the government handed out a lot of money to help people stay afloat. But the Biden administration’s handling of the economy after this historic pandemic has been exemplary. There was no recession or even a hard landing. Employment rebounded faster than anyone thought possible, thanks to programs like the American Rescue Plan and the Bipartisan Infrastructure Law.
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What About Taxes?
The 2017 Tax Cuts and Jobs Act, signed by former president Trump, reduced taxes on individual income taxes and estate taxes. These cuts will expire in 2025, but both candidates are proposing extending some of the provisions of this act.
President Biden has said he will allow the tax cuts for high earners — those with incomes over $400,000 — to expire while preserving the cuts for most Americans. Former President Trump has promised even greater tax cuts for wealthy Americans and corporations.
The One Bill that May Rise if Biden is Re-Elected
If Biden wins in November, you could see your automobile expenses rise. There are two components here: the cost of cars in general and your auto insurance cost.
The cost of a new vehicle may rise under a second Biden administration with an increased emphasis on electric vehicles and reducing carbon emissions. While the administration is currently working to lower the cost of electric vehicles to entice more Americans to buy them, there could be a short-term price bump as supply tries to keep up with demand.
The other factor is your car insurance. This is likely to continue to rise as natural disasters become more severe due to climate change. While auto insurance is less impacted by the climate than homeowners insurance, increased flooding and wind damage is likely to bump up auto insurance rates too.
Your Income May Go Up, Too
Here’s another thing that will likely go up if Biden is re-elected: your income. Your gross income may increase as minimum wages, both state and federal, may increase. In addition, low unemployment, which has been a hallmark of the current Biden administration, means there are fewer candidates for open jobs, which drives up wages.
Your disposable income may increase as well, as interest rates will likely come down while inflation stabilizes. Borrowing will become less expensive if the Fed cuts rates, as they have indicated they will do by the end of the year.
There is always a lot of noise about the economy, both macro and micro, during an election year. That’s why it’s important to learn how the policies of each candidate will impact your personal financial situation and vote accordingly.
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